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In the blanks provided to the left below, enter the letters of the underlying assumption, measurement method, qualitative criteria, or constraint most closely associated with the statements.

Note: Some letters may be used more than once and some may not be used at all. Only use one letter per blank. Marks will not be awarded if you respond with more than one letter.

A	Separate entity assumption	G	Matching
B	Continuity assumption	H	Full disclosure
C	Unit of measure assumption	I	Materiality
D	Time period assumption	J	Verifiability
E	Historical cost	K	Cost/benefit
F	Revenue recognition	L	Consistency
		M	Proprietary assumption

_____ 1) All assets and liabilities included on the financial statements are stated in terms of Canadian dollars.

_____ 2) An organizations financial condition and results of operations are reported from the point of view of the owners.

_____ 3) The various costs associated with a revenue transaction may be deferred until the revenue is earned.

_____ 4) Significant recognized and many non-recognized items should be described in the notes to the financial statements.

_____ 5) The company employs the same depreciation methods from period to period.

_____ 6) A building with a fair value of $68,000 is purchased for $65,000. The company records a debit to building of $65,000.

_____ 7) On delivery of a product, the company records revenue.

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